The broadest money supply, (M3), expanded (year-to-date) in February 2021 by 0.3 percent, relative to February 2020, but this was below the provisional benchmark for 2021, latest data from the Central Bank of Nigeria (CBN) shows.
The low growth was as a result of the fall in the Net Domestic Assets (NDA).
However, domestic credit expanded by 1.55 percent in February 2021 reflecting the continued effects of the various CBN’s credit policies as well as the on-going
development finance interventions.
Available data shows that Prime Lending and Maximum Lending rates continued to decline in February 2021.
The annualized growth rate at -7.08 percent was below the 2021 provisional benchmark of 4.66 percent, latest data from the Central Bank of Nigeria (CBN) shows.
Credit continued an upward trajectory since the inception of the Loan to Deposit Ratio (LDR) policy.
Credit to the private sector grew by 1.36 percent to N30.55 trillion in January 2021 from N30.14 trillion in December 2020.
Of the total banking sector credit to the economy, net credit to Central Government
continued to grow in February.
At an annualized rate of 16.32 percent, growth in credit to the private sector shot above the benchmark of 14.14 percent.
“To improve prospects of continuing credit growth in the near future, commercial banks should be encouraged to show greater commitment and compliance with the LDR policy,” the CBN said.